Under Armour has cut its Asia Pacific forecast for the year.
Revenue in the region that covers its Australian market fell 10 per cent in constant currency terms in the first quarter of fiscal 2027.
Asia Pacific revenue declined 7 per cent on a reported basis for the three months to 30 June. The region is now expected to post a low single-digit decline across the full year, reversing an earlier forecast of low single-digit growth. The company reports at regional level and does not break out Australian figures.
Two forces are pulling the top line down.
The company points to softer consumer demand, concentrated in North America and Asia Pacific, and to its own decision to hold back on discounting. It describes the approach as disciplined marketplace management and protection of full-price selling, accepting weaker near-term revenue in exchange for brand health and margin.
The effect shows most clearly online.
E-commerce revenue fell 12 per cent, taking it to 29 per cent of direct-to-consumer, while owned and operated store revenue declined 3 per cent. Total direct-to-consumer dropped 6 per cent to US$437 million and wholesale slipped 2 per cent to US$638 million.
"As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook," said Under Armour President and CEO Kevin Plank.
“By simplifying the business, we are operating with greater discipline and better positioned to protect profitability, while still investing in a sharper product portfolio through clearer storytelling with the goal of driving a more premium Under Armour that will consistently earn demand at full price."
Growth in the quarter came from one region.
EMEA lifted 12 per cent on a reported basis and 10 per cent in constant currency, with Latin America up 8 per cent but only 1 per cent in constant currency. That pushed total international revenue up 5 per cent to US$490 million while group revenue fell 3 per cent to US$1.1 billion and North America dropped 9 per cent to US$610 million.
By category, apparel revenue fell 2 per cent to US$734 million and footwear dropped 8 per cent to US$245 million.
President and chief executive Kevin Plank said the company continues "to make progress in building a more focused Under Armour", framing the pullback as a route to a more premium business that earns demand at full price.
Margin is where the strategy is landing.
Gross margin rose 590 basis points to 54.1 per cent, though the bulk of that came from refunds tied to the recovery of International Emergency Economic Powers Act tariff costs expensed in fiscal 2026 rather than trading performance.
Full year group revenue is now expected to decline at a mid-single-digit rate, against a prior outlook of a slight decline, with North America falling at a mid-single-digit rate and EMEA at a low single-digit rate. Gross margin is still expected to expand 220 to 270 basis points and operating income guidance holds at US$96 million to US$116 million.
The restructuring program behind the simplification carries total expected costs of about US$305 million and is due to be substantially complete by 31 December.